If you are a Non Resident Indian (NRI) or a Person of Indian Origin (PIO), you would definitely be faced by this question: Do I need a PAN card? Can I transact in the stock market / shares without a Permanent Account Number? Can I buy or sell property without a PAN card? How do I get a PAN card, where do I apply? What is the procedure? Here are your answers!
Most Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are confused about the PAN card.
If you are an NRI or a PIO, I am sure even you would be in a dilemma. Do you need a PAN card? If yes, for which type of transactions? What is the process to get a PAN card? Can you apply from a foreign country? Can you get a PAN Card without going to India?
Necessity of PAN card for NRI / PIO
Equity / Share Market Trading
Effective 1st January 2007, all Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) need a PAN card to invest in the Indian stock markets. (Foreign investors would also need a PAN).
So, if you are an NRI / PIO, and want to invest in the Indian capital market, you would need a Permanent Account Number / PAN card.
Earlier, there was a facility available to NRIs / PIOs to open a “Limited Purpose Beneficiary Owner Account” without a PAN. This facility is not available any more.
Opening Demat Account
A PAN is mandatory for opening a demat account with any depository in India.
Filing Income Tax Returns
A PAN number is mandatory for filing income tax returns. Thus, if you file your IT return in India (to claim a refund on tax deducted at source – TDS – or otherwise), you would need a PAN number.
Property Transactions
For resident Indians, a Permanent Account Number (PAN) is mandatory for entering into property transactions having a value over Rs. 5 Lakhs. (As per Rule 114B(a))
This condition has been waived for NRIs and PIOs (as per Rule 114C). Thus, it is not mandatory for an NRI / PIO to have a PAN for entering into a property transaction.
Although it is not mandatory, I would suggest that you still get a PAN due to a host of other reasons that I have discussed here. It is better to get it now instead of trying to get it at the last minute when it becomes a necessity for you – for example, while filing an IT return to claim a refund of some TDS.
Also, please note that PAN is mandatory if you want to repatriate the sale proceeds of the property out of India.
Process for obtaining a PAN card
Two agencies have been appointed by the Department of Income Tax (DIT) for issuing a Permanent Account Number and the PAN Card:
- Unit Trust of India Investor Services Ltd (UTIISL)
- National Securities Depository Limited (NSDL)
The PAN and PAN Card can be obtained by submitting an application to either of these two agencies.
Application for a new PAN has to be made using “Application Form 49A – Application for Allotment of Permanent Account Number (PAN)“.
You can download the free PAN application form here:
- Login Required PAN Card Application Form 49A – NSDL (File size: 128 KB)
- Login Required PAN Card Application Form 49A – UTI ISL (File size: Large file – 5.2MB)
Things to remember while filling the PAN card application form
- Providing the details of a “Representative Assessee” in India is not compulsory
- The field “Email ID” must be filled in the application form
- You can provide a foreign address – An Indian address is not mandatory
- “99″ and “999999″ should be entered in the “State” and “PIN Code” fields respectively if you do not have an address in India
- The actual foreign ZIP / PIN code should be entered one of the lines of the address field (preferably the last line), along with the name of the country
Documents needed for PAN application
You need to submit the following along with your PAN application:
- One passport size photograph
- Proof of identity (POI)
- Proof of address (POA)
- Demand Draft (DD) for the application fee and courier charges
Proof of identity (POI) for an NRI
- Copy of passport
Proof of identity (POI) for a PIO
Any one of the following:
- Copy of passport
- Copy of any other national ID attested by Indian Embassy / Consulate / High
- Commission Copy of Person of Indian Origin (PIO) card issued by Government of India
Proof of address (POA) for an NRI
Any one of the following:
- Copy of passport
- Copy of bank account statement in country of residence
- Copy of NRE bank account statement
Proof of address (POA) for a PIO
Any one of the following:
- Copy of passport
- Copy of any other national ID attested by Indian Embassy / Consulate / High Commission
- Copy of bank account statement in country of residence duly attested by Indian Embassy / High Commission / Consulate in the country where applicant is located
- Copy of Person of Indian Origin (PIO) card issued by Government of India
- NRE bank account statement
Bottomline: You can use the copy of your passport as both proof of identity and proof of address.
Cost involved in getting a PAN card
The regular application fee for obtaining a PAN card is Rs. 60 plus the service tax.
When you apply as an NRI / PIO from outside India, you would also have to pay applicable courier charges (Approx. Rs. 650) in addition to this fee.
Currently (Aug 2008), the total comes to Rs. 717.
This amount has to be paid through a Demand Draft (DD) drawn in favour of “NSDL – PAN“, and should be payable at Mumbai.
Time Frame
The PAN card is usually delivered to your foreign address within two months.
Alternate Application Process
NSDL has a provision for applying online for the PAN card. This is allowed for NRIs / PIOs living in one of the 103 countries.
Login Required Download the list of countries from where NRIs / PIOs can make an online application for PAN
Although this can be quite convenient, you need to make sure that all the relevant documents reach NSDL in 15 days. This can be quite impractical, and therefore, the regular process of downloading the form and dispatching it with the documents is a better option.
The online application can be made here: https://tin.tin.nsdl.com/pan/index.html
Once you submit the application online, you would get an acknowledgment containing a unique 15-digit acknowledgment number. Please note this number. Please also print and preserve acknowledgment
You would need to affix a photo to the acknowledgement and sign it. You would need to send this acknowledgement and the demand draft (DD) to:
Income Tax PAN Services Unit
National Securities Depository Limited (NSDL)
1st floor, Times Tower, Kamala Mills Compound
Senapati Bapat Marg
Lower Parel (W)
Mumbai – 400013
Maharashtra
India
Please remember to write your acknowledgement number behind the DD. Please also superscribe the envelope with ‘Application for PAN’ followed by your acknowledgment number. (For example, “Application for PAN – 881010100000097”).
If you do not want to apply online, you can download the free PAN application form here:
- Login Required PAN Card Application Form 49A – NSDL (File size: 128 KB)
- Login Required PAN Card Application Form 49A – UTI ISL (File size: Large file – 5.2MB)
More Information
For more information, you can write to:
- NSDL: tininfo@nsdl.co.in
- UTIISL: utiisl-gsd@mail.utiisl.co.in
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1. I want to know the process for NRI to change the person named as indian representative assessee.
2. Is it necessary now to name a new indian representative assessee or can we not just put the foreign address on the PAN card?
We would be looking to repatriate the funds.
Thanks for your help.
Dear Madhu,
Earlier, providing a representative assessee in India was mandatory.
Not any more – you can give your own foreign address.
Hi,
1. Please leave ward / circle, range and commisioner fields blank.
Area Code = DLC, AO Type = C, Range Code = 35 and AO Number = 1.
2. You need not fill the “Representative Assesee” section. It used to be mandatory earlier, but is not required any more.
Hope this helps!
I was filling in my PAN application, using some of the guidance in the article.
I think I figured most of it out, but was unsure about a couple of things. Hopefully, you can help me.
1. The first part of the application mentions the Assessing Officer, and requires their Ward number, Range, and other information. What do I fill in here?
2. Section 14 requires info about the Representative Assessee, which seems the same as myself. Do I fill in this section (just seems to duplicate my address, name, etc.)? Your article seems to suggest I should not fill this part.
Thanks in advance,
U
Hi,
Iam finding this site very useful.Nice website.
Iam an NRI.I had a question regarding section 13 (a) in the PAN form.Do I need to mention that Iam a salaried employee since Iam not working in India or does the whole section need to be answered in the same way irrespective of the type of applicant.
Thanks for ur help
Sunder
How do I get a DD payable in Mumbai? I live in US. Also, my US passport does not have a home address. How will the copy of passport be sufficient for proof of address?
DD must be payable at Mumbai. You can get rupee DD from SBI or any of your local bank.
I sent my oci card photocopy along with US passport copy.
BTW, I applied about 2months ago and now it’s approved and the card is on the way.
Hi Raj,
Thanks for sharing your experience – we all learnt from it!
Hi Sunder,
Thanks – I am glad that I could be of help.
The PAN application form needs to be filled in the same way irrespective of whether you are a resident or an NRI.
According to Indian Embassy PIO Card is not a valid document for proof of address.
The Indian High Comission Consular Services in London REFUSES to attest PIO Card’s address page inspite of the original address proof documents (Bank Statement and Telephone Bill) provided. ***The address is exactly the same in PIO Card, Bank Statement and Telephone Bill***.
They INSIST in a strong tone that they would attest the photo page of a PIO Card ONLY and they consider the address page of a PIO Card as a foriegn document which sounds silly. They went on to say that it is their RULE to attest the photo page ONLY.
The solution provided by them is that, the address page copy of the PIO Card has to be notarized and then attested by Foreign Commonwealth Office (FCO).
They also INSIST that they would ONLY attest the documents issued by them. So they DO NOT attest foreign passports or copy of Bank Statements.
So much to go through to pay tax!!!
Has any one went through a similar situation?
just to let you know that I received my PAN card today by United States Postal Service (USPS). Just to let everyone know that someone need to be at home to sign and receive the envelope.
PS: another post with Raj who posted question about PIO card.
I received my PAN card today by United States Postal Service (USPS). Just to let everyone know that someone need to be at home to sign and receive the envelope.
PS: another post with Raj who posted question about PIO card is not me
I applied for PAN this month (in July 2009). My application has my Middle name(husband’s name) also on it. My Foreign passport doesnt have my middle name(husbands name), as a result, it was rejected. Since I donot have OCI or PIO, can anyone suggest what can I do?
Hi Nalini,
Do you have any other acceptable document that has your husband’s name as your middle name? You can check if a credit card statement or a bank statement or a driver’s license would be acceptable.
hi i live in dubai. but i might go to India within 2 weeks. i need a pancard urgently. which is the fastest possible way to get the pancard.how many days will it take? which is fast -delivering it to my dubai address or to my India address?
Hi Ria,
I am not really sure which would be faster, but my guess would be that delivering in India would be faster.
I have a card with NRI status and i am going back to India do i need to change the card or reapply for a New Card.
Bank stated deducting my tds since 2008. When can I claim back. Is there any time limit.
Thank you for this excellent site. The information is clear and useful. I’m a US citizen with a PIO card. I intend to attach a copy of my passport and my drivers license for proof of address. I have a question about the authentication of the thumb print. How does that work? Is the notary stamp on the PAN card application or is that authentication on a separate document? Here the police department will do finger prints but usually it’s on a different card and is signed by the police officer. How should the thumb print be done to satisfy the PAN requirements? Thanks
I had a PAN Card before I went to the US in August, 2004. Can I continue using the same card, OR do I have to apply for a NEW PAN Card.